What next year's sick leave changes mean for you and your business

New Zealand sick leave law changes are set to be introduced to Parliament next year.

The changes would mean eligible employees can accumulate paid sick leave from their first day of employment, rather than wait six months before they are entitled to paid sick leave.

The changes were recommended by the Holidays Act Taskforce and the Government accepted the recommendations in February 2021.

In July 2021, the number of sick leave days also doubled from five to 10 days under the Holidays Increasing Sick Leave Amendment Bill.

Workplace Relations Minister Michael Wood said in 2021 that he would implement all of the proposals with legislation to be introduced in early 2022.

"The changes put forward by the Holidays Act Taskforce will make it easier to calculate entitlements and pay, giving employees and employers certainty and transparency.

"It's expected to be introduced in early 2022, to give businesses enough time to prepare for the changes." Minister Wood said.

Ministry of Business Innovation and Employment (MBIE) acting manager of employment standards Charlotte de Feijter said the sick leave changes were made in response to the COVID-19 pandemic.

"Allowing workers to recover and rest at home, helps to stop the spread of bugs, as well as helping businesses: studies have suggested that people working while sick are 20 percent less productive and the healthiest workers are up to three times more productive."

Feijter added the Government accepted the recommendations to remove the six-month waiting period before employees were entitled to sick leave.

"This change recognises that the current waiting period may encourage employees to go to work sick during this time, which raises health and safety concerns, and that having access to these entitlements in the first six months of employment would benefit both employees and employers."

According to Stats NZ as of March 2022, out of the 2.8 million people employed - 44,200 were away from work due to sickness, illness or injury.

This increased by 17,700 people from March last year.

"Sickness, illness, or injury as the main reason for being away from work for a full week has tended to remain fairly consistent and in the March 2022 quarter, we've seen it increase by around two-thirds annually as Omicron cases began to increase in the community," work and wellbeing statistics senior manager Becky Collett said.

The number of people who worked fewer hours in the week due to being sick, ill or injured also increased by 21 percent in the March 2022 quarter compared to the March 2021 quarter.

Sick leave graph March 2021 - March 2022
Sick leave graph March 2021 - March 2022 Photo credit: STATS NZ

Feijter told Newshub: "Legislative changes to implement this will be introduced in 2023."

When asked by Newshub why the changes were not introduced in early 2022 as previously stated by Minister Wood, a spokesperson for the minister told Newshub the legislation and proposed changes to the Holiday Act are complex and take time.

"We are working towards [the] introduction of the amended Bill in 2023 and as soon as practicable within that timeframe."

They added they will be taking the time to ensure the legislation is "clear and workable."